Princeton Digital Group, the Singapore-based data centre operator, announced that it has secured its first $280 million green loan that will help finance its data centre campus in Malaysia.
The company, which is backed by private equity major Warburg Pincus, said it secured the green loan from Maybank, Standard Chartered Bank, and UOB Malaysia for its 150MW, AI-ready JH1 campus in Sedenak Tech Park (STeP) in Johor.
The deal, according to Princeton Digital, marked its first green loan, which is a form of debt targeted at environment-friendly projects.
The hyperscale project is a planned $1.5 billion investment for Princeton Digital and the $280-million financing is for the first 52MW phase of JH1, which is expected to be ready for service in June 2024.
“Our data centre campuses are AI-ready and combine quality and resilience of infrastructure with a primary focus on sustainability,” said Rangu Salgame, chairman, CEO, and co-founder of PDG.
Princeton Digital said in October last year that it was looking to raise up to $1 billion in debt to finance multiple projects.
Princeton Digital Group was co-founded in 2017 by Rangu Salgame as a data centre operator in Asia. It currently has 20 data centres across five countries. It serves internet and cloud companies, and financial institutions.
The company last raised $500 million in February 2022 in an equity funding round led by Mubadala Investment Company, a state investor for the Abu Dhabi government.
The 150-MW hyperscale campus will be built within Sedenak Tech Park in Johor, which is the second-largest state of Malaysia.
Princeton Digital’s foray into Malaysia makes it the sixth market that it has expanded into after Singapore, China, Indonesia, India, and Japan.
In 2022, Malaysia was among the top investor destinations for data centres, recording 113 MW in development, contributing to GDP growth of 8.7%, per Knight Frank’s data.
